Lee Rudow became the CEO of Transcat, Inc. (NASDAQ:TRNS) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Lee Rudow's Compensation Compare With Similar Sized Companies?
Our data indicates that Transcat, Inc. is worth US$175m, and total annual CEO compensation is US$943k. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$230k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.
So Lee Rudow is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Transcat, below.
Is Transcat, Inc. Growing?
Transcat, Inc. has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.7%.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Transcat, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Transcat, Inc. for providing a total return of 143% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Lee Rudow is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Transcat shares with their own money (free access).
If you want to buy a stock that is better than Transcat, this free list of high return, low debt companies is a great place to look.
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